Rising Contract Disputes: Vietnam’s Import-Export with China and the Need for Clear Agreements

Amidst rising contract disputes and substandard goods preservation, over 100 Vietnamese cargo trucks have been stored in China since last year. The Lao Cai Economic Zone Management Board has issued a warning to provincial business associations about the increasing number of detained Vietnamese vehicles in Hekou, China. The reason for the detention was that the drivers failed to properly preserve the goods, resulting in damage and disputes over compensation and contract implementation. Despite efforts to resolve the issue, no success has been achieved so far.

To create a healthy business environment, the Lao Cai Economic Zone Management Board recommends that Vietnamese and Chinese businesses establish clear terms and records in contracts. Vietnamese businesses are also urged to improve product quality to maintain the reputation of exported goods.

The import and export activities through the Lao Cai international border gate have seen a significant increase in the value of goods traded in 2023 compared to the previous year. The import of Vietnamese agricultural products by China has increased, with exports doubling in the first three months of this year, especially for products like durian. The export turnover is expected to increase further with the official export of frozen coconuts and durians, potentially reaching 4.5 billion USD.

In conclusion, the Vietnamese authorities are actively working to resolve the issue of detained cargo trucks in China while also focusing on expanding export opportunities for agricultural products through the Lao Cai border gate. The key to success lies in clear contractual agreements, improved product quality, and continued efforts to enhance trade relations between Vietnam and China.